Gulf Resources announces completion of flood prevention project

Gulf Resources announced that it has completed its approximately $50M flood prevention project recently. This project was implemented for safeguarding its bromine facilities. While implemented to protect its bromine facilities and prevent potential flooding that could harm the wells, aqueducts and crude salt pans at the Company’s plant, the Company expects two long-term benefits: 1. Cost Savings. Over the past six years, the Company has spent approximately $47 million repairing its facilities after two separate typhoons. This amount is close to the total cost of the flood prevention project. The Company believes the flood prevention project may mitigate the risks and associated expenses related to future storms-induced flooding and prevent major flooding in the future, ultimately saving money in the long run. 2. Enhanced Utilization. Through the flood prevention project, the Company believes it may be able to drill in certain low-lying areas that were previously not suitable for wells. This expansion may result in higher utilization rates, particularly as the markets for bromine and crude salt improve.